AWE Increases Stake in Tui Oil Field (New Zealand)

AWE Limited has completed the acquisition of an additional 15% interest in the Tui area oil project and an additional 6.25% in the Oi exploration well, located offshore New Zealand in PMP 38158, from Mitsui E&P Australia Pty Limited. AWE is the Operator of the PMP 38158 joint venture.

Further to the company’s ASX release dated 3 October 2013, AWE purchased the additional interest in Tui and Oi for a consideration of USD6.4 million. The transfer of interest has been approved by the New Zealand Minister of Energy and Resources and the effective date of the transaction is 1 October 2013.

Following completion of the purchase, AWE now holds a 57.5% interest in Tui area oil project and a 31.25% interest in the Oi exploration well. AWE has the option to increase its equity in Oi up to 57.5% in any development through a buy-back of equity from Pan Pacific Petroleum.

Managing Director of AWE, Bruce Clement, said that the purchase of an additional interest in Tui and Oi was a good example of how the company is maximising near-field opportunities and delivering on its strategy.

“The Tui area oil project has been a fantastic performer for AWE over the years and we believe the project holds significant remaining value. As the Operator, we are very comfortable increasing our interest to 57.5% and we are looking forward to the drilling program that is scheduled to commence in the early part of 2014.

“We plan to drill both the Pateke-4H development well and the Oi exploration well in early 2014. If successful, these opportunities will add further production upside and add substantial value to the Tui project,” Clement said.

The Joint Venture partners in PMP 38158 are: AWE Limited (via subsidiaries) (Operator) 57.5%; New Zealand Oil & Gas (via subsidiary) 27.5%; Pan Pacific Petroleum (via subsidiary) 15%.

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Press Release, December 06, 2013